Nearly 200 UI employees allowed early retirement

IOWA CITY — The University of Iowa approved 197 of 362 applications for an early retirement incentive program, saving $28 million in five years, UI President Sally Mason said Thursday.

Those approved for the program must leave no later than June 30. The savings are greater than the $21 million originally estimated.

'I'm pleased at that outcome,' Mason said.

About 1,400 UI employees were eligible for the early retirement incentive program, aimed at cutting costs and capitalizing on consolidations identified through an efficiency review of Iowa's public universities. A consultant identified operational opportunities expected to save tens of millions and eliminate 250-some jobs across the UI, Iowa State University and University of Northern Iowa campuses.

Mason said the retirement incentive could help UI avoid layoffs in conjunction with the review. ISU and UNI so far have not pursued early retirement incentives.

To be eligible for the UI program, employees had to be at least 57 years old with at least 10 years of continuous, benefit-eligible employment. UI Health Care employees and those covered by the local Service Employees International Union collective bargaining agreement were not eligible.

Of the total applicants, 165 were denied for a variety of reasons, Mason said. Among those, she said, was the fear of losing institutional knowledge and employees critical to the operation of their departments.

'We've been very careful,' she said. 'We didn't approve every application.'

To applicants who would have cost the university as much or more to replace, administrators said no, according to Mason.

'We do worry about those things,' she said, adding, 'units have plans in place either for shifting responsibilities or, in some cases, collapsing positions together to allow us to spend less money overall and still have the same jobs being done.'

Employees approved for the incentive have 52 days to accept or reject the offer, although officials said they expect the total number will remain just under 200.

This year's retirement incentive is the third UI has offered in recent years. Programs were offered in 2009 and 2010 in response to the recession and budget cuts. The 2009 program netted 335 employees, saving $64 million. The 2010 program let 88 employees to retire early, saving $13 million, according to spokeswoman Jeneane Beck.

The university's efforts to improve efficiency come at a time the campus also is looking to grow. In light of proposed funding changes that would tie a majority of state support to resident enrollment, UI officials have ramped up recruitment.

Mason said those efforts are reflected in the increase in freshmen applications, admitted students and now those who have committed for the fall semester. Total accepted admissions are up 14 percent this spring compared with the same time last year. Accepted admissions are up 13.5 percent among Iowa residents and 15 percent among non-resident and international students, Mason reported.